PNoy to increase TESDA budget

MANILA, Philippines - President Aquino is ready to increase substantially the budget of the Technical Education and Skills Development Authority (TESDA) to provide more scholarships and create jobs, a Cabinet official said.

TESDA Director-General Joel Villanueva said a budget hike would help them implement programs designed to improve the skills of the workforce.

"I am sure that there will be a significant increase in the budget of TESDA. I'll not be surprised if it will be doubled," Villanueva said during a technical vocational education and training forum in Camp Aguinaldo on Friday.

"The president said he is very willing to increase the budget of TESDA," he added.

Villanueva said the budget hike would be used to fund scholarship to technical vocational students.

He said the focus of scholarship grants would be the business process outsourcing, agri-business, manufacturing, logistics, infrastructure and tourism.

The government has allotted P3 billion for TESDA this year.

Villanueva declined to say how much was the proposed outlay for the agency for next year.

Villanueva said the additional budget could boost efforts aimed at addressing the jobs-skills mismatch, one of the causes of unemployment.

He said they are planning to come up with a rewards system for technical vocational institutions that are performing well.

Funding support, Villanueva said, would be given to institutions offering courses that can make the students employable.

TESDA is also open to providing subsidies to companies that will provide on-the-job training to vocational students. Villanueva said such set-up would be a "win win" for both students who will learn new skills and enterprises that will avail of tax incentives. He noted that certain training expenses incurred by companies are tax deductible.

Villanueva said they are also forging partnerships with the public works and tourism departments since the two sectors offer opportunities to vocational graduates.